Apple Case Study

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Apple Introduction

Apple Inc is known for the provision of high-quality IT-based products and services and has significantly high brand value worldwide. The provision of Macbook PCs such as Macbook Pro or Air has contributed to its rise in the computerized systems market. Additionally, the provision of software systems such as the Safari Browser and the IAD producer has also contributed to easier operations. Apple phones as well have a significantly high value in the modern world. This study deals with conducting a SWOT analysis in order to evaluate strengths, weaknesses, opportunities, and threats of the brand. A Pestle analysis has also been conducted in order to assess the external factors affecting Apple Inc.

Company

Apple Inc.

Type of Industry

IT Hardware and Software

Sales/Revenue

$53.809 Billion

Area Served

Worldwide

Number of Stores

506 stores across 25 countries

Competition

Samsung, Nokia, Sony, Microsoft, Google

USP

Provision of high quality products with innovative features and ideas

Target Group

People with need of IT products with high performances

Products

Smartphones with iOS and Macbook Pcs or Laptops with Mac OS.

Website

https://www.apple.com/

Apple Swot Analysis

The various strengths, weaknesses, opportunities, and threats of the brand have been presented as follows:

Strengths

  • Apple is highly known for the provision of products with innovative designs.
  • Apple has experienced significant growth in sales over the last few years.

Weaknesses

  • Even though Apple is effective in providing high-quality products and services, the cost of these products and services is too high (Khan et al. 2015).
  • Customers using Apple systems face major issues relating to incompatibility.

Opportunities

  • Even though the iOS and Mac OS systems are not as user-friendly as that of Android and Windows systems, the Apple brand experiences significantly high demand.
  • The Apple iOS and Mac OS are implementing various cloud services and tools over recent years (Khan et al. 2015).

Threats

  • Apple Inc experienced a major decrease in their overall brand value due to the issue regarding avoidance of taxes.
  • The Android OS continues to grow in terms of mobile devices due to its user-friendly nature and lightweight utilisation.

Apple Analysis

Based on the case study of Apple, the brand experienced high profits, thus allowing them to procure a high amount of funds for the development of new ideas and concepts. The revenue value of Apple in the first quarter of 2018 was stated as the highest (88.29 billion US dollars). The values experienced a steep dive over the next quarters, the first quarter of 2019 also gained high global revenue (84.31 billion U) but was lower than that of 2018 (Statista, 2019). On the other hand, as per Dolata (2017), the organisation has some of their greatest minds in the world and they conduct brainstorming processes in order to develop new and innovative ideas. The development of ultra-thin phones and various software systems such as iTunes, iWork, and iLife has contributed to increase in brand value for the organisation.

In compliance with the Case study of Apple, the iPhone products are not affordable for all and thus may contribute to major problems with low sales in certain locations. Moreover, the iOS and MAC OS have major differences from their Android and Linux or Windows-based counterparts and thus contribute to issues with a lack of proper utilization. Additionally, the Mac OS and iOS are not as user-friendly as other operating systems in the market.

As per Boleslavsky et al. (2016), Apple has a high brand value and a significantly positive image in the market which contributes to this increase in product demands. Therefore, the brand can use this opportunity in order to ensure increased profits and sales. The demands of cloud services are increasing day by day due to its abilities in storing information, offloading required information and the utilization of AES encryption standards to prevent access to data by hacker groups or data thieves. Therefore, future implementations of more cloud services can lead to higher opportunities for profits and sales.

As per the case study of Apple, the brand kept revenue of around $44 billion of supposed tax from going into the hands of the government (Wang, 2018). This act of tax evasion led to a decrease in loyal customers of the brand. Additionally, the implementation of Android OS requires minimal funds and thus contributes to low prices of Android Phones, leading to a decrease in iOS users.

Apple Pestel Analysis

Political

  • Brexit issues in UK leading to political instability
  • Lack of free trade relations based on Free Trade Agreement

Economic

  • GDP growth rate of UK
  • Economic value of UK

Social

  • Diversity of cultures in UK
  • Conflicts at the workplace

Technological

  • Trade relations with China for procuring technologies
  • Technological implementation in workplace

Legal

  • Enactment of laws, rules, regulations and legislations
  • Compliance of organisations with the laws, rules, regulations and legislations

Environmental

  • Climatic conditions in UK
  • Pollution and use of renewable energy

Apple Analysis

The UK is experiencing major political backlashes due to the issues relating to Brexit. These Brexit issues are leading to political instability that can prevent various organisations from receiving government support. Britain wanted to leave the European Union due to the fact that people from all around the world were travelling there for job opportunities (Bbc.com, 2019). Therefore, the natives were not able to get proper job opportunities. Additionally, the Free Trade Agreement between Britain and various other countries in the European Union were broken down and contributed to increased problems for various organisations in Britain to continue their trade processes.

GDP Growth Rate UK

Figure 1: GDP Growth Rate UK

The GDP of UK has sustained a significant decrease over the last few years due to the lingering issues with Brexit. Britain is currently experiencing a state where they are unable to trade with various other European countries based on the Free Trade Agreement and are also unable to completely invoke Brexit and leave the European Union. This has led to the eventual decrease in GDP rates. It was found that UK had a GDP rate of 1.9% in the year 2016. This rate decreased to 1.8% in 2017 and 1.4% in 2018 (Statista.com, 2019). Therefore, it can be stated that the UK economy is on a downward spiral and can lead to major losses for various organisations. Based on the Apple case study, it can be stated that the brand currently has high revenue values and profits. However, these values may decrease in case of the continued decrease in economy of UK.

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UK offers a high cultural diversity which can lead to positive impacts on various organisations. However, it also contributes to increased conflicts within organisational systems. The availability of the African Diaspora in UK, various refugee groups and Asian students living in UK has contributed to this diversity (Wilcock, 2018). However, over the years, the invoking of Brexit has contributed to a decrease in the number of travelling to UK from the outside countries.

The Brexit issues have contributed to a significant decrease in trade options which has contributed to major challenges for organisations in procuring and utilising modern technologies. However, recent development of trade relations with China has contributed to an increase in the Technological implementations in UK (Wignaraja, 2016). Technology is used in various organisations, communities as well as for education purposes in various schools and institutions in UK.

The legal conditions in UK are stable and most organisations are highly compliant with government laws and legislations. The Equality Act of 2010 (c.15) ensures that all employees within an organisation are treated equally (Legislation, 2019). On the other hand, the discrimination laws incorporated within the act ensures that diversity is promoted and people from different race, age, culture, gender and religion can operate effectively within the organisational system. As per the case study of Apple, the brand is highly compliant with the terms of the Equality Act and Discrimination Laws.

UK has a highly favourable weather condition and a temperate climate. However, recent issues with pollution in major cities such as London have contributed to major concerns (Walton et al. 2015). However, the use of modernised systems such as solar panels and windmills for energy collection has contributed to a stable environmental condition in the UK.

Reference List

Bbc.com, (2019) EU officials: No basis for further UK Brexit talks Available at: https://www.bbc.com/news/uk-politics-49240809 [Accessed on 01/08/2019]

Boleslavsky, R., Cotton, C.S. and Gurnani, H., (2016). Demonstrations and price competition in new product release. Management Science, 63(6), pp.2016-2026.

Dolata, U., (2017). Apple, Amazon, Google, Facebook, Microsoft: Market concentration-competition-innovation strategies (No. 2017-01). Stuttgarter Beiträge zur Organisations-und Innovationsforschung, SOI Discussion Paper, 2(1), pp. 132-141.

Khan, U.A., Alam, M.N. and Alam, S., (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.

Legislation, (2019) Equality Act 2010 https://www.legislation.gov.uk/ukpga/2010/15/contents [Accessed on 01/08/2019]

Statista.com, (2019) Apple's global revenue from 1st quarter 2005 to 3rd quarter 2019 (in billion U.S. dollars) Available at: https://www.statista.com/statistics/263426/apples-global-revenue-since-1st-quarter-2005/ [Accessed on 01/08/2019]

Statista.com, (2019) Gross domestic product (GDP) year-on-year growth in the United Kingdom (UK) from 2000 to 2018 Available at: https://www.statista.com/statistics/281734/gdp-growth-in-the-united-kingdom-uk/ [Accessed on 01/08/2019]

Walton, H., Dajnak, D., Beevers, S., Williams, M., Watkiss, P. and Hunt, A., (2015). Understanding the health impacts of air pollution in London. London: Kings College London, Transport for London and the Greater London Authority, 1(1), pp. 6-14.

Wang, B., (2018). After the European Commission Ordered Apple to Pay Back Taxes to Ireland: Ireland's Future in the New Global Tax Environment. Ind. J. Global Legal Stud., 25(2), p.535-541.

Wignaraja, G., (2016). 18. Why trade with Asia is vital to the UK economy. The impact of the UK's post-Brexit trade policy on development, 4(3), p.65-71.

Wilcock, C., (2018). Mobilising towards and imagining homelands: diaspora formation among UK Sudanese. Journal of Ethnic and Migration Studies, 44(3), pp.363-381.

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